my CIBC bank account has a negative balance, now what?

So I did a paypal transaction and rather than charging my credit card it went straight to my checking account with CIBC. Now i have around -$130 in my bank account. i will deposit money into my account tomorrow to bring it up to the positive but i was wondering will having a negative balance with CIBC be a problem? I am surprised the transaction even when through without having enough money in the account in the first place.

[QUOTE=OS44;7623124]So I did a paypal transaction and rather than charging my credit card it went straight to my checking account with CIBC. Now i have around -$130 in my bank account. i will deposit money into my account tomorrow to bring it up to the positive but i was wondering will having a negative balance with CIBC be a problem? I am surprised the transaction even when through without having enough money in the account in the first place.[/QUOTE]

Since the transaction did not bounce with NSF, I assume you have overdraft protection. You will be charged an overdraft service fee and overdraft interest. The service charge is not small and the interest rate is not low. However, it should still be cheaper than NSF.

_______________Too many people spend money they haven't earned to buy things they don't want, to impress people they don't like. -- Will Smith
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[QUOTE=Rishi;7623410]This happened to me once too, but CIBC was kind enough to credit the overdraft charges when I explained my error. Go into the bank and explain the situation on Monday, you may get lucky.[/QUOTE]

what did you say to them exactly? would i have a good chance of getting the fee waived in my case?

[QUOTE=OS44;7623678]what did you say to them exactly? would i have a good chance of getting the fee waived in my case?[/QUOTE]
I just told them that I had accidentally selected my bank account instead of CC when making a PayPal payment, causing the overdraft. I said I had already initiated a transfer to bring the balance back above 0 and they agreed to waive the fees. I didn't speak to a teller, I spoke to the PBO whom I had been dealing with for a few years. I guess it also helped that I've had the account since I was 6.

[QUOTE=Rishi;7623704]I just told them that I had accidentally selected my bank account instead of CC when making a PayPal payment, causing the overdraft. I said I had already initiated a transfer to bring the balance back above 0 and they agreed to waive the fees. I didn't speak to a teller, I spoke to the PBO whom I had been dealing with for a few years. I guess it also helped that I've had the account since I was 6.[/QUOTE]

Just deposit the money like you originally planned and don't worry about it. It's just a $5 overdraft charge. There's also interest charges, but since you're depositing the money soon there won't really be any interest charges.

I personally wouldn't waste my time going into my bank for a $5 charge, but if it's worth it to you, give it a try.

Also, it's $5 each time you go into your overdraft, it's not a monthly fee or weekly fee or anything of the sort. So if you were to stay in your overdraft, you will incur interest charges, but there won't be any more $5 charges.

I like how banks let you take out more money than you have, and then charge you for that privilege. Why don't they just not let you take out more than you have in the first place, like in the old days? I sure wouldn't want them to allow overdrafts.

I was in exactly the same situation as you, my CIBC account showed negative, so I rushed to the bank to make a deposit to cover the neg balance and thought I was in the clear, then the next day the transaction was reversed, by the bank and paypal didn't get the funds from my account, I was charged a $40 nsf fee by CIBC.

I can guarantee the same will happen to you if you never applied for or received overdraft protection.